The company will spend as much as 130 million rupees ($2.45
million) to open up to 10 stores in Delhi and its suburbs this
financial year, Chief Executive Officer Ajay Kaul said at a
conference in New Delhi. Jubilant Foodworks opened India’s
second Dunkin’ Donuts store today.

Dunkin’ Donuts will compete in India with companies such as
Cafe Coffee Day, run by Amalgamated Bean Coffee Trading Co.,
Lavazza SpA’s Barista Coffee Co., and Starbucks Corp. (SBUX), which
plans to open its first India store in August through its
partnership with Tata Global Beverages Ltd. (TGBL)

Jubilant Foodworks signed a franchise agreement with
Canton, Massachusetts-based Dunkin’ Brands Group Inc. (DNKN) in
February 2011. The Indian company invested about 100 million
rupees in setting up a manufacturing facility, a research center
and an office for the brand last year, Kaul said.

The company is in discussions with other international food
retailers for their entry into the Indian market, Kaul said,
without giving more details.

Shares of Jubilant Foodworks fell 0.6 percent to 1,102.50
rupees as of 2:28 p.m. in Mumbai.

Demand Driver

Demand for brands such as Dunkin’ Donuts’ is being aided by
a rise in the number of Indians who travel, Dev Amritesh,
president and chief operating officer for Dunkin’ Donuts India
said.

“People are traveling a lot, getting exposed to what is
happening in countries around the world,” Amritesh said.
“Obviously, consumers want the experience that they see in
other places.”

The fast-food market in India is expected to grow to 146
billion rupees in 2014 from 47 billion rupees in 2010 helped by
a growing, young population, higher disposable incomes, and more
women starting to work, an August report by Noida, India-based
researcher RNCOS says.

Jubilant Foodworks’s profit is estimated to rise 54 percent
to 297 million rupees in the three months ended March 31, from
the same period a year earlier, according to the median of 17
analysts’ estimates compiled by Bloomberg. The company will
report its financial results on May 10.